Eco stimulus fund is safearea to invest says Neri President and Chief Executive Officer Romulo L. Neri of the Social Security System explains to the Davao media on Thursday that SSS will only engage in safe investment like the proposed P300-billion economic stimulus fund.
Neri said they are looking at this scheme because they will be lending under sovereign guarantee even as he said that it would be purely an investment which is expected to earn reasonable yield based on benchmark rates.
SSS he said eyes an investment of about P12 billion or one-fourth of the government financial institutions' share of infrastructure projects or less than five percent of the total assets of SSS. Under the Social Security Law, the SSS can finance domestic infrastructure projects provided that the investment shall be guaranteed by the Philippine government.
SSS will invest 30 percent of their funds to infrastructure and 40 percent on government securities. And all are invested in the Philippines and nothing on foreign exposure. SSS also maintains a solid balance sheet, he said.
The proposed investment still has to be finalized he said and the other financial institutions namely the Government Insurance System, Land Bank of the Philippines and the Development Bank of the Philippines will come in for as long as the investment is sound.He said participating on this investment would create jobs which could probably help those would be affected SSS members because of the financial crisis.
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